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DB TOP 50: The influencers
Who are the key figures that determine what the world drinks?
We count down the top 50.
There are myriad definitions of the word power, but for the purpose of our list what matters most is the power to influence. In compiling the chart we were not simply looking at turnover – though among the many corporate powerhouses that made the final cut this is, of course, an important factor. Rather, we’ve tried to identify the men and women who have the biggest impact determining what alcoholic beverages will fill the world’s glasses today and during the coming year. Ben Grant counts them down.
We’re keen to hear who YOU think are the key powermongers in the global drinks trade.
Read through our list and let us know your thoughts.
Would you agree that we’ve got the drinks Top 50 right or not?
Click here and send us your comments
50 |
Tony Laithwaite |
Direct Wines is the largest independent wine retailer in the world, shifting over 4.5 million cases per year. The group owns or has a controlling share in seven leading UK wine clubs – regularly dealing with over 600,000 customers – as well as 4Seasons in the US. Currently only 20% of business is conducted on the internet, though the company is working hard to develop online sales. | |
49 |
Ghislain de Montgolfier President, Union des Maisons de Champagne President, CIVC |
With emerging markets posting strong growth, it seems safe to assume that Champagne has a bright future, but as pressure on supply grows the industry has some important decisions to make to safeguard its long-term future. In his role as president of the Union des Maisons (and thus, automatically, also the president of the CIVC), de Montgolfier will play a pivotal role in this process. | |
48 |
Jancis Robinson Journalist |
Best known for her weekly column in the Financial Times and her website www.jancisrobinson.com, she also regularly contributes to 13 publications in countries around the globe. She may not have the reach or influence of the other wordsmiths on our list, but when it comes to the trade her reputation is second to none, and a positive write up is a major boost for any brand aiming for more listings. Also, The World Atlas of Wine, now in its sixth edition, is widely regarded as one of the finest wine reference books. | |
47 |
Ian Curle CEO Edrington Group |
With turnover of £278.5m (e413.2m) in the last financial year, Edrington is a significant force in the Scotch industry, driven principally by the flagship Famous Grouse brand, which has just breached the 3m case mark. Rémy Cointreau’s decision to walk away from Maxxium in 2009 and the continuing uncertainty about V&S’s future could seriously impact upon Edrington’s future distribution capabilities, however. | |
46 |
Eduardo Guilisasti
CEO |
As CEO of Chile’s number-one producer, Guilisasti has engineered phenomenal growth for the company, which recorded net revenues of $405m (e306m) in 2006. Last year the company’s exports hit 11.5m cases in 115 markets. Through its Chilean business as well as Viña Trivento, the second largest player in Argnetina, Concha y Toro has put Chile and, indeed, South America on the wine map. The category is one of the fastest growing globally, and Guilisasti’s organisation is its engine room. | |
45 |
Bob Kunze-Concewitz CEO Gruppo Campari |
With 2006 turnover hitting e932.4m, Gruppo Campari is the seventh largest player in the global beverage industry, according to Impact. The company is the market leader in Italy and, of the 190 nations where its products are distributed, enjoys a particularly encouraging position in Brazil. The company owns 40 brands, with a strong focus on premium spirits. | |
44 |
Sergey Bokhanov
CEO |
Pulling together a plethora of previously state-owned companies, SPI Group is the largest exporter of Russian vodka and a leading player in the domestic market. In terms of affecting the balance of the global industry, the company owns the rights to distribute the Stolichnaya brand in the US – by far and away its largest market – seriously affecting Pernod Ricard’s ability to leverage the brand elsewhere. | |
43 |
Jay Z |
Among the bling brigade, no star has rocked the boat more significantly than Jay Z. Last year he hit the headlines when he called for a boycott of Cristal, accusing Roederer boss Frédéric Rouzaud of racism. He then followed this up in his next release by aligning himself with the Cattier Champagne brand, Armand de Brignac. Many in the trade have dismissed Jay Z’s posturing, but they’d be well advised to criticise with caution. Rival rapper P Diddy has recently been signed up by Ciroc – and Cognac/Champagne would feel the force if Jay Z and others followed suit and joined the vodka revolution. | |
42 |
Jong-Woong Yun President & CEO Jinro |
Jinro dominates its home territory, controlling a 52% share of the market for soju, the Korean national spirit, as well as a 60% share of domestic beer sales through its brewing arm, Hite. Last year the company sold 71m 9-litre cases, generating total sales of $1.4bn. It now exports spirit to 30 markets worldwide, though this only represents 5.4% of total output. Yun was appointed as CEO of the company in April this year, and has served as president of the Korea Alcohol & Liquor Research Centre since March. | |
41 |
Trevor O’Hoy President & CEO Foster’s Group Ltd |
The company’s broad portfolio includes the eponymous beer brand, a top ten global player, as well as five wines with global reach. Foster’s has distribution in over 155 markets worldwide, clocking up revenue of A$4.55bn (e2.72bn) in the last financial year. Foster’s could feel the impact of the current Australian drought more acutely then any other player in the wine trade. | |
40 |
Robert Parker Editor The Wine Advocate |
“Score an 89 and it’s going to be a tough sell, but score 90-plus and it’s a license to print money.” So lamented one leading winemaker to the drinks business recently, and 25 years after first receiving worldwide attention, he continues to wield a weighty influence over the trade. In fact the term “Parkerization” is increasingly entering the industry vernacular to describe wines that are vinified specifically to appeal to Mr Parker’s fruit-hungry palette. | |
39 |
Roland van Bommel
CEO |
As the largest family-owned Scotch company William Grant & Sons was a pioneer in the single malt category and its Glenfiddich brand continues to stand head and shoulders above the competition in terms of sales. This originality was more recently manifested in Hendrick’s Gin and Monkey Shoulder – two intriguing brands that have generated modest commercial successes, but have torn up the rulebook in terms of industry convention. In the innovation stakes, Van Bommel’s team is certainly one to watch. | |
38 |
Julian Diaz CEO Dufry |
Dufry has been one of the most dynamic operators in the global travel retail sector in recent years. It now operates 440 shops in airports and onboard cruise ships, which collectively generated turnover of CHF1.436bn (e893m) last year. Wine and spirits represented 17% of this, totalling CHF244m (e152m). The Swiss company has broad global reach with operations in 37 countries on five continents – a listing with Diaz’s Dufry can thus play a pretty important role in building a brand’s global status. | |
37 |
Christian Porta CEO Chivas Brothers |
The decentralised nature of Pernod Ricard means that the brand owner subsidiaries have a high level of autonomy – and the group’s whisky and gin arm, Chivas Brothers, is by far the most powerful of these. The group has been particularly proactive in driving a premium agenda for its brands, and has made particularly impressive inroads is China, the only major emerging market where Pernod Ricard outsells Diageo. | |
36 |
August A Busch IV President & CEO Anheuser Busch |
With a massive 48.5% market share, brewer Anheuser Busch dominates its home market, and the combined sales of Budweiser and Bud Light make it the top-selling beer brand worldwide. In 2006 the company generated sales of $17.96bn (e13.6bn), with the US still contributing over 75% of volume. It is also a major player in the packaging industry as a leading manufacturer and recycler of aluminium cans. Busch IV also serves as a board member for Grupo Modelo, the leading brewer in Mexico (which is, incidentally, AB’s number-one export market). | |
35 |
Andreas Gembler President and CEO Bacardi Ltd |
Bacardi’s global sales of $4.967bn (e3.76bn) in 2007 were generated in over 100 markets worldwide. The company has acquired two premium vodkas in recent years – Grey Goose for $2.7bn in 2004 and 42 Below for a rather more modest $91m last year. In June the company announced plans to pump $250m into its Dewar’s Scotch business, indicating a confidence that the brand – already a top seller in the US – has potential for significant growth in Asia. Prior to joining the company Gembler spent 30 years with tobacco giant Philip Morris. | |
34 |
Joseph E Gallo
CEO |
With global sales of over 12m cases Gallo is one of the true giants of the wine trade, and one of the only family-owned companies to make it to the very top. It’s also one of the most secretive, refusing to publish financials. Fifteen of Ernest and Julio’s descendents continue to lead the company, with Joseph (Ernest’s son) at the helm. The family’s vicelike grip on the company – controlling its own destiny – has been cited as a key factor behind the enduring success. | |
33 |
James Bond Secret agent Her Majesty’s Secret Service |
The epitome of refined sophistication, Bond has been a global icon since exploding onto the big screen in 1962. He single-handedly bought the Vodka Martini to prominence, and his refusal to deploy a bottle of Dom Pérignon 1955 in a fight with Dr No surely rates as one of the coolest moments in film. In the product placement stakes there’s no greater coup than having Bond sip your brand. Finlandia and Bollinger reaped the rewards of featuring in Casino Royale – and their rivals in the vodka and Champagne categories will be fighting hard to fill Daniel Craig’s glass in the next instalment … unless, of course, another brand has the audacity (and budget) to change Bond’s drinks repertoire. | |
32 |
Graham Mackay Chief executive SABMiller |
As the number one at South African Breweries, Mackay was instrumental in the acquisition on Miller Brewing Co in 2002, a move that catapulted the company into the big league. Last financial year the company notched up revenue of $18.62bn (e14.11bn), up an impressive 22%. The company continues to derive almost half of total sales in Africa and Asia, with over 80 breweries on the two continents. It is also one of the largest bottlers of Coca Cola. | |
31 |
Pierre Castel
President & founder |
Hailing from an overwhelmingly inward looking market, Castel is a French wine company with a New World approach – not surprising therefore that it has become one of the most successful, chalking up turnover of e884m last year. The group, the largest producer in France and the third largest worldwide, is also responsible for 33 beer brands, is a major force in soft drinks bottling. The 600-plus stores under the Nicolas and Oddbins fascias, meanwhile, make a considerable contribution to revenues and provide a useful route to market. | |
30 |
Jean-Marie Laborde CEO Rémy Cointreau |
The decision to terminate the global distribution deal with Maxxium in March 2009 will give Rémy full control of its brands once again, flying in the face of the widely held assumption that bigger is better. The company claims that the motive was to broaden its distribution options in the growth markets of Asia – indeed the company performs well there, with the region generating a significant 14% of its total turnover, which stands at e785.9m. It has been widely speculated that the move was the beginning of a process of prepping the company for sale, with Diageo singled out as the most likely suitor. Laborde, a former chairman of Maxxium, played a part in establishing the joint venture between Moët Hennessy and Diageo in his former role at LVMH. | |
29 |
Carolyn Panzer
Global director, alcohol and responsibility |
Diageo has taken a particularly proactive role in the sphere of responsible consumption, headed by Carolyn Panzer. She has been involved in compliance and responsibility issues for two decades, including being the inaugural deputy director of the Portman Group and her current role as chairman of the Distilled Spirits Council Code Review Board. Diageo currently has responsible consumption projects in 45 markets, and broke new ground with its proactive TV ad campaign in the UK earlier this year. The success of Panzer and her team in tackling this critical issue – and demonstrating the industry’s commitment to this objective – could prove pivotal in the struggle to ensure that governments do not implement punitive legislation. | |
28 |
Roberto Graziani
President & CEO |
Nuance generated sales of CHF2.118bn (e1.32bn), of which 15% was wine and spirits, makes it a pretty serious contender in terms of sales. More important, however, is the role that the retailer plays in providing an attractive environment to showcase brands. Nuance, which now operates 320 stores at 52 airports, was one of the pioneers in terms of making airport shopping a luxury experience. The company’s stores in Singapore Changi airport are commonly regarded as some of the best in the business. | |
27 |
John Dunsmore CEO Scottish & Newcastle |
Dunsmore took over the reins at S&N in November, but immediately found himself on the defensive with a consortium of Carlsberg and Heineken lining up a hostile takeover bid. Last year the company generated revenue of £3.33bn (e4.94bn), and either owns or has interest in over 50 breweries worldwide. Notably, the company is making impressive inroads into Russia and Eastern Europe through its 50/50 JV with Carlsberg, Baltic Beverage Holdings, and it is also the market leader in the UK. However, with the Danish/Dutch double team circling, Dunsmore will have his work out in the coming year. | |
26 |
Don St Pierre Jnr Managing partner ASC Fine Wines |
Every company has begun talking about China in recent years, but it is those that began to tackle the market last century that are best positioned to capitalise on the market’s phenomenal growth. Having begun operations in 1996 ASC Fine Wines – founded by St Pierre Jnr and his father – now distributes 35% of all imported wine into China and has a network that reaches deep into the country. The company has generated sales growth averaging 50% for each of the last seven years, selling over 250,000 cases in 2006. ASC has a staff of 350, most of whom are local, and will increase the staff to 450 in the next year. The company is also the first organisation in China to provide WSET training programmes, so will play a pivotal role in developing knowledge in the market. Currently the company distributes wines from 850 producers in 14 countries: for brands wanting to tap into this rapidly emerging wine market, ASC represents the most comprehensive route to market. | |
25 |
Sir Terry Leahy
CEO |
Tesco already has a stranglehold on the lucrative UK grocery market, with almost three-quarters of total 2006 revenue, £42.02bn (e62.4bn) derived from the home market. The lion’s share of future growth, however, will be overseas: less than a quarter of the 574 planned store openings this year are UK-based, while the opening of the first Fresh & Easy store in the US in November signalled the opening shot in what promises to be a retail battle of gargantuan proportions. | |
24 |
Erik Juul-Mortensen President Maxxium Global Travel Retail & TFWA |
As the head of the distribution giant’s travel retail division, Juul-Mortensen stewards a plethora of leading brands in the “shop window to the world”, as the channel is commonly known. Perhaps more influential, however, is his role heading up the TFWA. The association’s two annual shows in Cannes and Singapore are of paramount importance within the industry – if a brand wants to prosper in travel retail, featuring at the massively over-subscribed TFWA shows is an absolute must. | |
23 |
Prof Ian Gilmore Chairman Alcohol Health Alliance |
The UK looks set to be the front line in the responsible drinking battle; the issue dominates both the media and political agenda, and any decisions made by the British government could have serious repercussions in other markets around the world. There is no more critical issue facing the industry at the current time, and as president of the Royal College of Physicians, Gilmore has taken a firm stance calling for tighter restrictions on the industry. In his new role as chairman of the recently formed Alcohol Health Alliance, he looks set to have even greater influence on the key political decision makers. | |
22 |
Mariann Fischer Boel
Agriculture minister |
The EU’s budget for wine stands at e1.3bn but the Union hasn’t exactly been too savvy in its spending – some e500m goes on disposing of surplus. The value of the budget seems safe for the time being, but since her arrival in 2004 Boel has pledged to shake up the sector: under her proposals 200,000ha will be grubbed up over the next five years; chaptalisation will be banned; labelling will be simplified to ease consumer understanding; and a great slice of the budget will be committed to marketing. The European Parliament will vote on Boel’s proposals in February, and they could come into force – dramatically shaking up the nature of the industry – by the end of next year. | |
21 |
José Luis Duran Chairman management board Carrefour |
With over 12,500 stores worldwide Carrefour is number two in the global grocery league, generating total sales of e97.2bn in the last year. The company aims to add 1.2m square metres of retail space each year, and opened almost 1,000 new stores in 2006. International expansion is at the heart of future growth: Carrefour is now present in 30 countries, which derive 52% of turnover. Asia is generating the fastest growth, up 13%, while the acquisition of Atacadao in Brazil in April has consolidated the company’s leadership in this fast-moving economy. | |
20 |
Bernie Ecclestone President & CEO Formula 1 |
As the big cheese of Formula 1, Bernie Ecclestone holds the keys to the most important sponsorship platform in the world – and with a total ban on tobacco advertising soon to bite, the sport represents a stellar opportunity for drinks brands with global ambitions and deep enough pockets. Races take place in 17 countries, making F1 arguably the most effective method of communicating with consumers on all five continents – and the sport is particularly popular in the emerging economies of China and Brazil. With a global audience upwards of 850 million, F1 is the fifth most watched sports event in the sporting calendar (Note: the top four events take place either annually or every four years; F1 takes place 17 times every year). Foster’s and Martini have enjoyed a long and fruitful association with F1, Red Bull now has its own team, Johnnie Walker is leveraging its sponsorship of Lewis Hamilton’s Maclaren Mercedes team, a number of brands have signed up top drivers past and present as responsible consumption ambassadors. And, lest we forget, when the winners celebrate on the podium it is perhaps the only time that a drinks brand – Champagne Mumm – gets pictured on the front page of national newspapers around the globe. | |
19 |
Marvin Shanken
Publisher |
With circulation of almost 400,000 and an estimated readership numbering in excess of two million, The Wine Spectator is by far the most widely read consumer wine publication in the world – though the vast majority of readership is in the US. The magazine reviews several thousand wines in its 16 annual issues, and a positive review can be enormously beneficial to a wine’s standing. Shanken is also the proprietor of Impact, the US drinks trade report. | |
18 |
Lee Scott
CEO |
Total sales stand in excess of $300bn (e227.3bn). However, the concerted focus on foreign expansion indicates where the company’s future growth potential lies. Last year total international sales hit $77.1bn (e58.4bn), up over 30% year-on-year. Investment in new stores outside the US will hit $15bn (e11.3bn) this year, with 320 stores opening. | |
17 |
Bengt Baron CEO V&S Group |
With net sales of SEK10.35bn (e1.15bn) in 2006, ownership of Absolut and a massive slice of the northern European distribution business, Baron leads one of the leading players in the global trade. But in terms of influencing the landscape of the industry, his most important contribution will be his role informally advising the Swedish government on the potential sale of the company. During the protracted process that has surrounded the possible sale, Baron has consistently maintained that it’s “business as usual” – but in reality, it’s anything but. We also feel duty bound to point out that – to the best of our knowledge – he is also the only Olympic Gold Medal winner on our list, having won the 100m backstroke at the Moscow Games in 1980. | |
16 |
W Leo Kiely III President & CEO |
As the chief exec of Molson Coors, W Leo Kiely III was the driving force behind net sales of $5.6bn (e4.2) last year, producing over 48m hectolitres at its 10 breweries. The company has been a long-standing market leader in Canada, took the number-two spot in the UK with the acquisition of Coors in 2005, and is the third placed brewer in the US. It’s been a heady ascent for Kiely, who’s first job was mowing grass in a cemetery. | |
15 |
Hollywood |
The explosive growth of Pinot Noir sales in the last three years can be traced directly back to the release of Sideways in 2004. Hannibal Lecter didn’t quite manage to perform the same role for Chianti, but there’s no doubting that Tinseltown has an important role to play in broadening the appeal of wine. A Good Year and the controversial Mondovino have reached significant audiences in recent years, and wine is now firmly registered on Hollywood’s radar. | |
14 |
Nobutada Saji Chairman & CEO Suntory Ltd |
The Suntory Group incorporates 177 companies that generated sales of ¥1,413.9bn (e9.01bn) last year. The group has a stranglehold on the domestic drinks industry, controlling three-quarters of the Japanese whiskey business, and it is increasingly looking for growth overseas. Major inroads are being made in China; the product portfolio includes vinous interests in France and Germany, as well as Scotch whisky company Morrison Bowmore. The recent strong performance of Japanese whiskies in international competitions bodes well for a bright future. | |
13 |
Paul Varga
Chairman & CEO |
Varga oversees a portfolio of 35 brands as the CEO of Brown Forman, and in fiscal year 2006 he steered the company to total sales of US$2.4bn (e1.8bn). This loyal servant arrived at the organisation as a summer intern immediately after completing his business administration studies in 1986. Since then he has served in a wide range of roles, including managing the jewel of Brown Forman’s crown, Jack Daniel’s. Arguably the most widely distributed spirit in the world, you’d be hard pushed to find a back bar that doesn’t carry the famous Old Number 7 bottle – and the brand has pushed back the boundaries with its ground-breaking marketing programme and phenomenal visitor centre in its hometown of Lynchburg, Tennessee. | |
12 |
Carlos Brito CEO InBev |
The joining together of Interbrew and AmBev in 2004 created the world’s biggest brewing company, controlling an estimated 14% share of the global market. The former, spearheaded by the Becks and Stella Artois brands, was already the world’s number three – but as a result of the deal last year Latin America contributed over e5bn to the company’s global turnover of e13.31bn. Carlos Brito, a Brazilian national who has previously worked for Shell Oil and Daimler Benz, was appointed CEO in December 2005. | |
11 |
Dr Margaret Chan Director general World Health Organisation |
Hong Kong-born Dr Chan was elected as director general of the WHO in November. She had already won widespread plaudits for her efficient and decisive handling of the H5N1 and SARS epidemics, earning the nickname Mrs Avian Flu. Chan has pledged that Africa and women’s issues would be her top priority, however the organisation is also committed to tackling non-communicable diseases. It was responsible for engineering the Framework Convention on Tobacco Control, the first piece of comprehensive, globally-binding legislation to govern the tobacco industry. Chan has publicly expressed her willingness to engage with the alcohol and food industries (in stark contrast to her resolute commitment not to talk with the tobacco companies), however with “problem drinking” becoming a growing concern there is serious concern that Chan and the WHO could yet dramatically impact on the trade. | |
10 |
Pierre Pringuet
Managing director |
Having gobbled up vast swathes of Seagram and Allied Domecq, Pernod Ricard is regarded by analysts a far more vibrant player than its arch rival Diageo; the company also holds the most comprehensive drinks portfolio in the business. With turnover during the last year hitting e6.443bn and sales topping the 100m mark, Pernod is a serious force to be reckoned with. A truly global vodka brand – or the lack thereof – remains the company’s weakness; it is still aiming to wrestle global autonomy over Stoli and is a frontrunner in the hunt for Absolut – but it seems unlikely that it could afford both. Current CEO Patrick Ricard has announced his decision to step down next year, suggesting that a transition of power to Pringuet is already at an advanced stage. | |
09 |
Jorgen Buhl Rasmussen
CEO |
The wealthy, beer-favouring markets of western Europe continue to generate some two-thirds of Carlsberg’s total revenues, which totalled DKK41bn (e5.5bn) last year. However, the company was fast out of the blocks in addressing the emerging economies of Eastern Europe and Asia, suggesting that it will “probably” reap rich rewards as these territories grow. Asia currently contributes 6% of revenue, but the announcement earlier this year that it plans to treble production in India with its JV partner South Asia Breweries makes clear the perceived potential there. The Baltic Beer Holdings JV, meanwhile, is making big strides in Eastern Europe. Carlsberg’s standing in the global beer arena could increase dramatically if its bid for S&N – in partnership with Heineken – proves fruitful. | |
08 |
Ben van Doesburgh CEO Maxxium |
With total net sales of e1.689bn Maxxium has had a good year financially. But Rémy Cointreau’s decision to exit the distribution group leaves van Doesburgh with his work cut out keeping the remainder of the network in place. The shockwaves of the possible V&S sale will be felt particularly dramatically at Maxxium HQ, which could potentially see its stakeholders cut from four to two in a year. | |
07 |
Rob Sands President & CEO Constellation Brands |
By far the largest wine producer by volume, Constellation is a powerful force in the trade with total sales in 2007 of $6.402bn (e4.85bn) across all beverage sectors. The lion’s share of the business is conducted in the US, with the UK and Australasia also contributing significantly. The company has been in a highly acquisitive mood in the last couple of years, picking up a string of high value assets. Rob Sands was appointed CEO in July and – with Flagstone and Fortune Brands’ wine assets snapped up since his arrival – the company looks set to continue in this direction. | |
06 |
Jean-François van Boxmeer
Chairman & CEO |
Van Boxmeer has headed up Heineken in a number of different markets, briefly leaving the company to take the helm at Zywiec SA in Poland in the late 1990s. Last year revenues reached e11.83bn, representing impressive growth just shy of 10%. The eponymous brand continues to be the most valuable global beer brand, and the company’s portfolio also includes another 170 brands with brewing operations in 65 countries. If Heineken and Carlsberg are successful in their seemingly inevitable swoop for S&N, the move will represent a seismic shift in the beer landscape. | |
05 |
Vijay Mallya Chairman UB Group |
Billionaire business mogul Dr Vijay Mallya is one of the most flamboyant and famous men in India. Ranked by Forbes as the 664th richest man in the world, he’s said to “live the life of a Maharajah”. UB Group – the conglomerate he has headed up from the age of 28 – has interests in a variety of industries, including media, aviation and technology.
Virtually unknown to many in the global trade, Mallya’s United Spirits sold 66m 9l-cases in the last year, enough to make it the world’s third largest volume supplier, with revenue totalling $1.65bn (e1.25bn). In 2005 the company bought its chief competitor Shaw Wallace, consolidating its place at the top of the Indian tree, and in May UB picked up Whyte & Mackay for £595m (e882.9m), giving the company a an overseas foothold. As India opens up to international spirits, the W&M brands will gain tremendous benefit from their new owner’s unrivalled distribution network. |
|
04 |
Thomas J Flocco President & CEO Beam Global |
In 2005 Flocco led the company in the deal that carved up Allied Domecq and propelled Beam in to the big time as the world’s fourth largest spirits company. It now boasts a comprehensive portfolio of spirits brands generating net sales of $2.761bn (e2.09bn) in 2006 – though it recently disposed of its wine business to Constellation. 2008 could be a make or break year for the company. Beam is a prime contender in the fight for V&S; winning the battle will propel the company to even giddier heights, but – given the close relationship that already exists between the two – if it loses out it will feel the repercussions hardest. In the plus column Flocco is backed up by the muscle of parent Fortune Brands, but on the flipside Fortune’s reliance on the US “home and hardware” business – set against the backdrop of the sub-prime crash – is cause for concern. | |
03 |
Bernard Arnault Chairman & CEO LVMH |
LVMH is the major powerhouse in the global luxury goods industry, with a veritable department store of brands covering fashion, beauty, jewellery and drinks. Last year the wine and spirits division generated revenues of e2.994bn, a year-on-year increase of 13%. As befits a company that controls such a vast swathe of the global Champagne market, LVMH is a master of building strong vibrant brands, and it has recently applied this expertise to its formidable whisky asset Glenmorangie. Diageo controls a one-third share of Moët Hennessy – but the uncertain future of Rémy Cointreau could ultimately have some bearing on this holding. | |
02 |
Dr Paul Walsh
CEO |
The Undisputed Heavyweight Champion of the World, Diageo’s sales for the 2007 financial year stand at £7.481bn (e11.1bn), more than 60% more than its nearest rival. The dramatic turnaround of the Johnnie Walker brand – which punched through the 15m case mark this year – indicates the expertise in driving sales on a global scale. The company outsells the competition in every emerging market except for China, and Walsh makes no secret of his determination to catch up with Pernod Ricard in this key territory. Champagne and Cognac remain the two major holes in an otherwise comprehensive portfolio (aside from its one-third share in the Moët Hennessy group). The acquisition of Rémy Cointreau would plug this gap and there’s little doubt that Diageo, with a market valuation of $27bn (e40.1bn), has the required financial muscle if the French group comes up for sale. | |
01 |
Anders Borg Finance minister |
Yes, that’s right, the most influential man in the world of drinks in 2007-08 is Swedish finance minister, Anders Borg. The 39 year old was the architect of the economic doctrine of the Moderate Party before joining government last October. Upon ascension Borg’s boss, PM Frederik Reinfeldt declared: “The state should not own companies if the ownership does not have an obvious strategic role and if we can find an investor willing to pay the right price.” Most high profile of the state-owned companies is drinks giant V&S: and a flurry of activity among the global drinks giants – not to mention the analysts, bankers and investors – suggests the Swedes will have little trouble securing “the right price”. So far, so clear, but why on earth does Borg have more of an influence on the world of drinks than anyone else? Well, as finance minister he will ultimately engineer the seemingly inevitable sale – and as and when the deal goes through the impact on the trade will be profound. In Absolut, V&S owns one of the foremost global brands – surely the most significant asset that will come up for grabs for years to come. The identity of its new home will be an enormous boon to the winning company, wreak havoc on established distribution networks and be a crushing blow to those parties that lose out. Reading through The Power List it’s noticeable that the impact of the V&S sale looms large in the future prospects of many of the industry’s biggest players. Borg doesn’t produce a single drop of beverage alcohol, and he’s not responsible for a penny of turnover, but from an office in Stockholm he is preparing to make a decision that will send out shock waves that will rock the world of drinks. |
BALANCE OF POWER
Would you agree that we’ve got the drinks Top 50 right or not? We’re keen to hear who YOU think are the key powermongers in the global drinks trade. |
So, the most powerful man in the world of drinks is a politician. From a country with a population of less than 10 million. Surely it must be a misprint? Or perhaps we’re joking? Well, no, we’re deadly serious. Borg may not be an alcohol producer (and he may sport a distinctly dodgy ponytail) but the decision that he makes will dramatically – and permanently – change the landscape of the global drinks trade and upset the delicate balance of power. Nobody’s actions will affect more people in the industry in the next 12 months than Borg.
There are, of course, many external factors that have a profound effect on the machinations of the drinks industry – in fact, only 30 of our Top 50 are the bosses of corporate entities principally concerned with making beverage alcohol. So, as the keen mathematicians reading this will have noted, only 60% of the individuals responsible for determining what the people
of the world drink actually produce any.
Political activity will inevitably have an impact on the marketplace, with the impending EU wine shake up securing Marian Fischer Boel a place on the list. While more traditional influencers – the writers and cultural icons – continue to
loom large.
Then there’s those who are involved in health issues. Two senior medical policy makers and an industry exec devoted to tackling the issue of responsible consumption made the list this time round. The actions spearheaded by these three could, ultimately, have such a dramatic impact on the global industry agenda that one of them could conceivably be top of the list next time round.
In terms of the divide among producers, 17 are principally concerned with spirits, eight are brewers and only five make wine – almost all of them, however, have their fingers in various pies other than their principal business. This divide indicates the remarkable consolidation of the beer business (which could yet shrink further if the S&N deal goes through). While on the flipside, aside from a few giants, the wine trade remains remarkably fragmented.
With the drinks landscape largely moulded in the mature markets, it is activity in the emerging economies that will invariably have the biggest influence in the coming years. All eyes are on the BRIC countries, with companies around the world working feverishly to establish themselves in massively populous nations with rapidly increasing disposable income and an obsession with aspirational brands. The inroads that companies have made into these markets was one of the most important factors in determining their rank in the 50.
Notably the top companies domiciled in India and Russia feature in the list; while Brazil is featured in the form of InBev boss Carlos Brito, a Brazilian national who sells over $5m worth of beer in Latin America; China’s only representative comes in the form of the nation’s leading importer, which is headed up by an American. When the drinks business next publishes a list of the leading influencers, it seems inevitable that the number of people hailing from, and doing business in, these markets will be on the rise.
Currency: Where applicable annual turnover has been quoted, taken from the company’s last set of published results. Given the varied dates on which figures were published and steep fluctuations in the currency market, all values are presented in native currency and e, converted at the rate on 1/1/07. The e value is not strictly accurate, but has only been included to give an approximate estimation of each company’s financial clout.
© db December 2007